Cramer's 'Mad Money' Recap: Wade In with Kaydon

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"Wind power is hands-down the best form of renewable energy," Jim Cramer told viewers of his "Mad Money" TV show on Tuesday. That's why he once again declared 2009 to be the year of wind power and recommended Kaydon (KDN) as the next in his series of "stealth" wind power stocks.

Cramer explained that while Kaydon is best known for its industrial bearing business that mainly serves heavy industry as well as the aerospace and defense markets, the company is also the market leader in low-friction wind turbine bearings.

Cramer compared Kaydon to his other wind-power plays Trinity Industries (TRN) and Owens Corning (OC). Both of these are also large manufacturing companies with small, but growing wind power segments.

Wind power currently only accounts for 8% of Kaydon's sales, but is 50% of the company's current backlog. According to Cramer, wind power should account for 20% of the company's sales by 2009 and is expected to triple by 2010. Kaydon is currently the market leader in wind-power bearings, with over 50% market share.

Cramer: What to Buy as Oil Drops

At only 19 times its expected earnings, Cramer called Kaydon's current valuation "too cheap" for its 14.5% long-term growth rate. He said Kaydon's estimates are just too low given the company's potential -- that's why it made his list of stealth wind stocks.

Get Some SPX

Cramer highlighted SPX (SPW) as the next in his series of "new tech" companies investors need to own. He returned to his thesis that the best investment ideas are not in old tech names like Intel (INTC) and Cisco (CSCO), but are instead in new tech -- companies working to solve the world's real problems.

Cramer explained that of SPX's four divisions, all have at least some exposure to alternative energy, industrial automation, or power conservation and all of them are in bull market mode. Two of the company's main businesses are in manufacturing values for nuclear reactors and crystal growers for the solar industry, he noted.

SPX's flow technology division makes pumps, values and filters for the power generation industry. The company's test and measurement division makes systems to increase efficiency in several different industries.

Its thermal equipment division makes cooling systems for power plants. And SPX's industrial products and services division makes power transformers for the electric utility industry. All of these are just a fraction of what SPX does to help the world make and use power more efficiently, noted Cramer.

Cramer told investors SPX is a buy, but warned the stock is thinly traded and investors should not pay up for its shares.

Cut and Run

Cramer provided viewers with an update of the "From Russia With Love" portfolio of his five favorite Russian stocks. Cramer recommended the portfolio on April 7, and since then the stocks are up an average of 13.7%, while the S&P 500 is up less than 1%. But Cramer said even with the portfolio's stellar performance, changes still need to be made.

Cramer's Russian portfolio included Mechel (MTL), Wimm-Bill-Dann Foods (WBD), Central European Distribution (CEDC), Central European Media (CETV) and CTC Media (CTCM). He said that while the first four stocks have been and continue to be fabulous, the fifth stock, CTC Media, has been a disaster.

According to Cramer, its time to cut and run with CTC Media. While he still likes the strong media story in Russia and surrounding countries, he said CTC has proven to be just too small to take advantage of the growth.

While rival Central European Media has an 18%-40% audience share in its markets, CTC only has a 12-13% share in its markets. Cramer also feels CTC paid too much for a recent acquisition, which is further weighing down the stock.

In the interest of diversification, Cramer said both CTC and Central European Media shouldn't have been in the portfolio together to begin with. He said Central European Media is the way to play going forward.

Mad Mail

In the "Mad Mail" viewer feedback segment, Cramer told a viewer that he's less bullish on GameStop (GME) after the company's recent lackluster conference call.

He told another viewer that he recommends selling Apple (AAPL) in and around the announcement of the next version of its popular iPhone.

In a final note, Cramer told viewers that NuCor (NUE) has finally gone low enough to be attractive and he'd be a buyer at these levels.

Lightning Round

In the Lightning Round, Cramer was bullish on First Solar (FSLR), Applied Materials (AMAT), Nordic American Tanker Shipping (NAT), Frontline (FRO), Procter & Gamble (PG), Caterpillar (CAT) and Petroleo Brasileiro (PBR).

Cramer was bearish on Capital Trust (CT), LDK Solar (LDK), Diana Shipping (DSX), Navios Maritime (NM) and Capstone Turbine (CPST).

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Jim Cramer writes about all the stock trades in his charitable trust for TheStreet.com in Action Alerts Plus. Recent stocks he's traded in this account include Schering-Plough(SPG), Yamana Gold(AUY) and Abbott Laboratories(ABT).

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